With only a few days left until the holidays. Here are some [tag]last minute[/tag] [tag]gifts for gamblers[/tag]. [tag]Books[/tag], [tag]cuff links[/tag] and [tag]dice[/tag].

In gambling, the [tag]odds[/tag] on display do not represent the true chances that the event will occur, but are the amounts that the bookmaker will pay out on winning bets. In formulating his odds to display the bookmaker will have included a profit margin which effectively means that the payout to a successful punter is less than that represented by the true chance of the event occurring. This profit is known as the ‘[tag]over-round[/tag]‘ on the ‘[tag]book[/tag]‘ (the ‘book’ relates to the old-fashioned ledger that wagers were recorded in and thus gives us the term ‘bookmaker’) and relates to the sum of the ‘odds’ in the following way:

In a 3-horse race, for example, the true chances of each of the horses winning based on their relative abilities may be 50%, 40% and 10%. These are the relative probabilities of the horses winning and are simply the bookmaker’s ‘odds’ multiplied by 100 for convenience. The total of these three percentages is 100, thus representing a fair ‘book’. The true odds of winning for each of the three horses is Evens, 6-4 and 9-1 respectively. In order to generate a profit on the wagers accepted by the bookmaker he may decide to increase the values to 60%, 50% and 20% for the three horses, representing odds of 4-6, Evens and 4-1. These values now total 130, meaning that the book has an overround of 30 (130 – 100). This value of 30 represents the amount of profit for the bookmaker if he accepts bets in the correct proportions on each of the horses: he will take in, for example, £130 in wagers and only pay £100 back (including stakes) no matter which horse wins. Thus is the art of [tag]bookmaking[/tag]!

[tag]Profit[/tag]ing in gambling involves predicting the relationship of the true probabilities to the payout odds. If you can consistently make bets where the odds of paying out are better (pay out more) than the true odds of the event, then over time (in theory) you will come out ahead.

The odds or amounts the bookmaker will pay are determined by the amounts bet on each of the respective possible events. They reflect the balance of wagers on either side of the event, and include the deduction of a bookmaker’s brokerage fee (“vig” or vigorish).

In probability theory and [tag]statistics[/tag] the [tag]odds[/tag] in favour of an event or a proposition are the quantity p / (1 − p) , where p is the probability of the event or proposition. In other words, an event with m to n odds would have probability m/(m + n). For example, if you chose a random day of the week, then the odds that you would choose a Sunday would be 1/6, not 1/7. These ‘odds’ are actually relative probabilities. Generally, ‘odds’ are not quoted to the general public in this format because of the natural confusion with the chance of an event occuring being expressed fractionally as a probability. Thus, the probability of choosing Sunday at random from the days of the week is ‘one-seventh’ (1/7), and although a bookmaker may (for his own purposes) use ‘odds’ of ‘one-sixth’ the overwhelming everyday use by most people is odds of the form 6 to 1, 6/1 or 6-1 (all read as ’six-to-one’) where the first figure represents the number of ways of failing to achieve the outcome and the second figure is the number of ways of achieving a favourable outcome. This is also the most convenient way for a person to understand how much winnings will be paid if the selection is successful: the person will be paid ’six’ of whatever stake unit was bet for each ‘one’ of the stake unit wagered. For example, a £15 winning bet at 6/1 will win ‘6 x £15 = £90′ with the original £15 stake also being returned.

Taking an event with a 1 in 5 probability of occurring (i.e. a probability of 1/5, 0.2 or 20%), then the odds are 0.2 / (1 − 0.2) = 0.2 / 0.8 = 0.25. This figure (0.25) represents the stake necessary for a person to win one unit on a successful wager. This may be scaled up by any convenient factor to give whole number values. E.g. If a stake of 0.25 wins 1 unit, then scaling by a factor of four means a stake of 1 wins 4 units. If you [tag]bet[/tag] 1 at these odds and the event occurred, you would receive back 4 plus your original 1 stake. This would be presented in fractional odds of 4 to 1 against (written as 4/1 or 4-1), in decimal odds as 5.0 to include the returned stake, in craps payout as 5 for 1, and in moneyline odds as +400 representing the gain from a 100 stake.

By contrast, for an event with a 4 in 5 [tag]probability[/tag] of occurring (i.e. a probability of 4/5, 0.8 or 80%), then the odds are 0.8 / (1 − 0.8) = 4. If you bet 4 at these odds and the event occurred, you would receive back 1 plus your original 4 stake. This would be presented in fractional odds of 4 to 1 on (written as 1/4 or 1-4), in decimal odds as 1.25 to include the returned stake, in craps as 5 for 4, and in moneyline odds as −400 representing the stake necessary to gain 100.

At least the games with regulated international professional competition have been referred to as “sports” or “sporting” events, not simply “games”, since 1893 at the latest.^[3] Quite a variety of particular games (i.e. sets of rules and equipment) are the subject of present-day competition, including many of those already mentioned, with competition being especially broad in nine-ball, snooker, three-cushion and eight-ball…

Snooker, though technically a pocket billiards variant and closely related in its equipment and origin to the game of English billiards, is a professional sport organized at the international level, and its rules bear little resemblance to those of pool games.

A “Billiards” category encompassing pool, snooker and carom was featured in the 2005 World Games, held in Duisburg, Germany, and the 2006 Asian Games also saw the introduction of a “Cue sports” category. Efforts have also been underway for many years to have cue sports become Olympic competitions.^{[citation needed]}

Equipment

Billiard balls

Main article: Billiard balls

Pool balls

Billiard balls vary from game to game, in size, design and number. Carom billiards balls are larger than pool balls, and come as a set of two [tag]cue balls[/tag] (one colored or marked) and an object ball (or two object balls in the case of the game four-ball also known as [tag]yotsudama[/tag]). American-style pool balls, used in any pool game and found throughout the world, come in sets of two suits of object balls, seven solids and seven stripes, an 8 ball and a cue ball; the balls are racked differently for different games (some of which do not use the entire ball set). Blackball (English-style eight-ball) sets are similar, but have unmarked groups of red (or blue) and yellow balls instead of solids and stripes, and are smaller than the American-style; they are used principally in Britain, Ireland, and some Commonwealth countries, though not exclusively, since they are unsuited for playing nine-ball. [tag]Snooker[/tag] balls are also smaller than American-style pool balls, and come in sets of 22 (fifteen reds, 6 “colours”, and a cue ball). Other games also have custom ball sets, such as Russian pyramid and [tag]bumper pool[/tag].

Billiard balls have been made from many different materials since the start of the game, including clay, bakelite, celluloid, crystalite, ivory, plastic, steel and wood. The dominant material from 1627 until the early to mid 1900s was ivory. The search for a substitute for ivory use was not for environmental concerns but based on economic motivation and fear of danger for elephant hunters. It was in part spurred on by a New York billiard table manufacturer who announced a prize of $10,000 for a substitute material. The first viable substitute was celluloid, invented by John Wesley Hyatt in 1868, but the material was volatile, sometimes exploding during manufacture and was highly flammable.^[4][5] Today, billiard balls are often made with the thermoset resin Bakelite.

Tables

There are many sizes and styles of pool and billiard tables. Generally, tables are rectangles twice as long as they are wide. Most pool tables are known as 7-, 8-, or 9-footers, referring to the length of the table’s long side. Full-size snooker and English billiard tables are 12 feet (3.7 m) long on the longest side. Pool halls tend to have 9 foot (2.7 m) tables and cater to the serious pool player. Pubs will typically use 7 foot (2.1 m) tables which are often coin-operated. Formerly, 10 foot (3 m) tables were common, but such tables are now considered antique collectors items; a few, usually from the late 1800s, can be found in pool halls from time to time. Ten-foot tables remain the standard size for carom billiard games. The slates on modern carom tables are usually heated to stave off moisture and provide a consistent playing surface.

The length of the pool table will typically be a function of space, with many homeowners purchasing an 8 foot (2.4 m) table as a compromise. High quality tables are mostly 4.5 by 9 ft (2.7 m). (interior dimensions), with a bed made of three pieces of thick slate to prevent warping and changes due to humidity. Smaller bar tables are most commonly made with a single piece of slate. Pocket billiards tables normally have six pockets, three on each side (four corner pockets, and two side pockets).

Cloth

All types of tables are covered with billiard cloth (often called “felt”, but actually a woven wool or wool/nylon blend called baize). Cloth has been used to cover billiards tables since the 15th century. In fact, the predecessor company of the most famous maker of billiard cloth, Iwan Simonis, was formed in 1453.

Bar or tavern tables, which get a lot of play, use “slower”, more durable cloth. The cloth used in upscale billiard parlours and home billiard rooms is “faster” (i.e. provides less friction, allowing the balls to roll farther across the table bed), and competition-quality pool cloth is made from 100% worsted wool. Snooker cloth traditionally has a nap (consistent fiber directionality) and balls behave differently when rolling against versus along with the nap.

The cloth of the billiard table has traditionally been green, reflecting its origin (originally the grass of ancestral lawn games), and has been so colored since the 16th century.^[6] However, the color also serves a useful function, as non-color-blind human eyes have a higher sensitivity to green than to any other color.^[7]

Rack

Main article: Rack (billiards)

A [tag]rack[/tag] is the name given to a frame (usually wood or plastic) used to organize billiard balls at the beginning of a game. This is traditionally triangular in shape, but varies with the type of billiards played. There are two main types of racks; the more common triangular shape which is used for eight-ball and straight pool and the diamond shaped rack used for [tag]nine-ball[/tag].

Cues

Billiards games are mostly played with a stick known as a cue. A cue is usually either a one piece tapered stick or a two piece stick divided in the middle by a joint of metal or phenolic resin. High quality cues are generally two pieces and are made of a hardwood, generally maple for billiards and ash for snooker.

The “butt” end of the cue is of larger circumference and is intended to be gripped by a player’s hand. The “shaft” of the cue is of smaller circumference, usually tapering to an 0.4 to 0.55 inch (11-14 mm) terminus called a ferrule, where a leather tip is affixed to make final contact with balls. The leather tip, in conjunction with chalk, can be used to impart spin to the cue ball when not being hit in its center.

Cheap cues are generally one piece cues made of ramin or other low quality wood with inferior tips of various materials (usually plastic). A quality cue can be expensive and may be made of exotic woods and other expensive materials which are artfully inlaid in decorative patterns. Skilled players may use more than one cue during a game, including a separate cue for the opening break shot and another, shorter cue with a special tip for jump shots.

The mechanical bridge

The mechanical bridge, sometimes called “the ladies aid”, “rake”, “bridge stick” or simply “bridge”, and known as a “rest” in the UK, is used to extend a player’s reach on a shot where the cue ball is too far away for normal hand bridging. It consists of a stick with a grooved metal or plastic head which the cue slides on. Many amateurs refuse to use the mechanical bridge based on the perception that to do so is unmanly. However, many aficionados and most professionals employ the bridge whenever the intended shot so requires. Some players, especially current or former snooker players, use a screw-on cue butt extension instead of or in addition to the mechanical bridge. Bridge head design is varied, and not all designs (especially those with cue shaft-enclosing rings, or wheels on the bottom of the head), are broadly tournament-approved. In Italy a longer, thicker cue is available for this kind of tricky shots.

Chalk

Chalk is applied to the tip of the cue stick, ideally before every shot, to increase the tip’s friction coefficient so that when it impacts the cue ball on a non-center hit, no miscue (unintentional slippage between the cue tip and the struck ball) occurs. Cue tip chalk is not actually the substance typically referred to as “chalk” (generally calcium carbonate, also known as calcite or carbonate of lime), but any of several proprietary compounds, with a silicate base. “Chalk” may also refer to a cone of fine, white hand chalk; like talc (talcum powder) it can be used to reduce friction between the cue and bridge hand during shooting, for a smoother stroke. Some brands of hand chalk actually are made of compressed talc. (Tip chalk is not used for this purpose because it is abrasive, hand-staining and difficult to apply.) Many players prefer a slick pool glove over hand chalk or talc because of the messiness of these powders; buildup of particles on the cloth will affect ball behavior and necessitate more-frequent cloth cleaning.Cue tip chalk (invented in its modern form by straight rail billiard pro William A. Spinks and chemist William Hoskins in 1897)^[8][9] is made by crushing silica and the abrasive substance corundum or aloxite^[9] (aluminum oxide),^[10][11] into a powder^[9] and using forced air to achieve the desired consistency. It is combined with dye (originally and most commonly green or blue-green, like traditional billiard cloth, but available today, like the cloth, in many colors) and a binder (glue).Finally, a 15 ton-per-square-inch hydraulic press^{[citation needed]} is used to compress the “chalk” into large cakes which are dried on a rack, and then cut into small cubes, dimpled on the top to receive the cue tip, and wrapped in paper sleeves. Each manufacturer’s brand has different qualities, which can significantly affect play. High humidity can also impair the effectiveness of chalk. Harder, drier compounds are generally considered superior by most players.

[tag]Omakase[/tag] [tag]Links[/tag] from [tag]Amazon[/tag] [tag]Associates[/tag] for [tag]gambling[/tag] content

This information does not purport to be the alpha and omega of online gaming laws. Please in accordance to your local laws:

United States

The United States Court of Appeals for the Fifth Circuit ruled^[2] in November 2002 that the [tag]Federal Wire Act[/tag] prohibits electronic transmission of information for sports betting across state lines but affirmed a lower court ruling^[3] that the Wire Act “‘in plain language’ does not prohibit Internet gambling on a game of chance.”

Some states have specific laws against online gambling of any kind. Also, owning an online gaming operation without proper licensing would be illegal, and no states are currently granting online gaming licenses.

In March 2003, Deputy Assistant Attorney General John G. Malcolm testified before the Senate Banking Committee regarding the special problems presented by online gambling. A major concern of the United States Department of Justice is online money laundering. The anonymous nature of the Internet and the use of encryption make it especially difficult to trace online money laundering transactions.

In April 2004 [tag]Google[/tag] and [tag]Yahoo![/tag], the two largest internet search engines, announced that they were removing online gambling advertising from their sites. The move followed a United States Department of Justice announcement that, in what some say is a contradiction of the Appeals Court ruling, the Wire Act relating to telephone betting applies to all forms of Internet gambling, and that any advertising of such gambling “may” be deemed as aiding and abetting. Critics of the Justice Department’s move say^{[citation needed]} that it has no legal basis for pressuring companies to remove advertisements and that the advertisements are protected by the First Amendment. As of April 2005, Yahoo! has provided advertising for “play money” online gaming.

In August 2004, Casino City, an online portal for internet gambling sites, sued the US Department of Justice. The complaint alleged, inter alia, that the websites business—promoting internet gambling—was legal, and requested a declaration from the court that its business was protected by the First Amendment. The U.S. District Court for the Middle District of Louisiana dismissed the case in February of 2005.

In its opinion, the District Court wrote,

It is well-established that the First Amendment does not protect the right to advertise illegal activity… The government’s interest is specifically directed towards the advertising of illegal activity, namely Internet gambling… Furthermore, the speech in which the plaintiff wishes to engage is misleading because it falsely portrays the image that Internet gambling is legal… Because plaintiff’s speech concerns misleading information and illegal activities, it does not fall within the speech that is protected by the First Amendment.^[5]

The US Court of Appeals, 5th Circuit, dismissed [tag]Casino City[/tag]’s appeal in January, 2006.

In February 2005 the North Dakota House of Representatives passed a bill to legalize and regulate online poker and online poker cardroom operators in the State. Testifying before the State Senate, Nigel Payne, CEO of Paradise Poker, pledged to relocate to the state if the bill became law. However, the measure was defeated by the State Senate in March 2005. Rep. Jim Kasper, who sponsored the 2005 legislation, plans to introduce similar bills in the 2007 North Dakota legislative session.

In July 2006, David Carruthers, the CEO of BetonSports, a company publicly traded on the London Stock Exchange was detained in Texas while changing planes on his way from London to Costa Rica. He and ten other individuals had been previously charged in a sealed indictment with violations of US Federal laws relating to illegal gambling. While as noted above, a United States Appeals court has stated that the Wire Act does not apply to non-sports betting, the Supreme Court of the United States previously refused to hear an appeal of the conviction of Jay Cohen, where lower courts held that the Wire Act does make it illegal to own a sports betting operation that offers such betting to United States citizens.

The BetOnSports indictment alleged violations of at least 9 different Federal statutes, including 18 USC Sec. 1953 (Operation of an Illegal Gambling Business). Carruthers is currently under house arrest on a one million dollar bail bond.

In September 2006, [tag]SportingbetPLC[/tag] reported that its chairman, Peter Dicks, was detained in New York City on a Louisiana warrant while traveling in the United States on business unrelated to online gaming. Louisiana is one of the few states that has a specific law prohibiting gambling online. At the end of the month, New York dismissed the Louisiana warrant.^[12]

Also in September 2006, just before adjourning for the midterm elections, both the House of Representatives and Senate passed legislation (as an amendment to the unrelated Safe Port Act) that would make transactions from banks or similar institutions to online gambling sites illegal. This differs from a previous bill passed only by the House that expanded the scope of the Wire Act. The passed bill only addresses banking issues.^[13] The act was signed into law on October 13, 2006 by President George W. Bush, and there is a provision for a 270-day period to develop enforcement measures. At the bill-signing ceremony, Bush never mentioned the Internet gambling measure, which was supported by the National Football League and opposed by banking groups.

In response to this new legislation, a number of online gambling operators including PartyGaming, The bwin Group, Cassava Enterprises, and Sportingbet announced that real-money gambling operations would be suspended for U.S. customers. PartyGaming’s stock dropped by 60% following its announcement. Other operators such as [tag]PokerStars[/tag], Bodog, and WSEX.com announced their intention to continue serving customers in the U.S.

On April 26, 2007, Rep. Barney Frank (D-MA) introduced [tag]HR 2046[/tag], the Internet Gambling Regulation and Enforcement Act (IGREA). The [tag]IGREA[/tag] would modify the [tag]UIGEA[/tag] by providing a provision for licensing of Internet gambling facilities by the Director of the Financial Crimes Enforcement Network. On June 8, 2007, the House Financial Services Committee, chaired by Rep. Barney Frank, held a hearing entitled, “Can Internet Gambling Be Effectively Regulated to Protect Consumers and the Payments System?”. Expert witnesses at the hearing testified that Internet gambling can be effectively regulated for age verification, money laundering issues, facilitation of state and federal tax collection, and for issues relating to compulsive gambling.

On June 7, 2007, Rep. Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act. This act would legalize Internet poker, bridge, chess, and other games of skill. Also on June 7, Rep. Jim McDermott [D-WA] introduced H.R. 2607, the Internet Gambling Tax Act. The IGTA would legislate Internet gambling tax collection requirements.

Australia

On the 28th of June 2001 the Australian Government passed the Interactive Gambling Act 2001 (IGA). The government said that the IGA was important to protect Australians from the harmful effects of gambling.

The IGA targets the providers of interactive gambling services, not their potential or actual customers. The IGA makes it an offence to provide an interactive gambling service to a customer physically present in Australia, but it is not an offence for Australian residents to play poker or casino games online. In stark contrast to the USA, sports betting online is also completely legal in Australia, with many state government licensed sportsbooks in operation, such as Centrebet, Sportingbet & [tag]Betfair[/tag].

The offence applies to all interactive gambling service providers, whether based in Australia or offshore, whether Australian or foreign owned. The offense carries a maximum penalty of $220,000 per day for individuals and $1.1 million per day for bodies corporate. (More information regarding the Interactive Gambling Act 2001 can be found Here.

Complaints regarding Online gambling facilities serving Australian users can be made to the Australian Communication and Media Authority at its Homepage.

Other countries

Various forms of online gambling are legal and regulated in many countries, including most members of the European Union and several nations in and around the Caribbean Sea.

In India it is neither legal nor illegal the Law is silent on the issue, but in the state of [tag]Maharashtra[/tag] it is a banned offence under the “[tag]Bombay Wager Act[/tag]“.

The government of the island nation of Antigua and Barbuda, which licenses Internet gambling entities, made a complaint to the World Trade Organization about the U.S. government’s actions to impede online gaming. The Caribbean country won the preliminary ruling but WTO’s appeals body somewhat narrowed that favorable ruling in April 2005. The appeals decision held that various state laws argued by Antigua and Barbuda to be contrary to WTO agreements were not sufficiently discussed during the course of the proceedings to be properly assessed by the panel. However, the appeals panel also ruled that the Wire Act and two other federal statutes prohibiting the provision of gambling services from Antigua to the United States violated the WTO’s General Agreement on Trade in Services, or “GATS”. Although the United States convinced the appeals panel that these laws were “necessary” to protect public health and morals, the asserted United States defense on these grounds was ultimately rejected because its laws relating to remote gambling on horse-racing were not applied equally to foreign and domestic online betting companies, and thus the United States could not establish that its laws were non-discriminatory.^[16]

On March 30, 2007 the WTO confirmed the U.S. “had done nothing to abide by an earlier verdict that labeled some U.S. Internet gambling restrictions as illegal.”^[17]

On June 19, 2007, Antigua filed a claim with the WTO for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This followed by a day similar demands for compensation made by the European Union.^[18]

Parimutuel betting (from the French language: pari mutuel, mutual betting) is a betting system in which all bets of a particular type are placed together in a pool; taxes and a house take are removed, and payoff odds are calculated by sharing the pool among all placed bets.

The parimutuel system is used in gambling on horse racing, greyhound racing, jai alai, and all sporting events of relatively short duration in which participants finish in a ranked order. A modified parimutuel system is also used in some lottery games.

Parimutuel gambling is frequently state-regulated, and offered in many places where gambling is otherwise illegal. Parimutuel gambling is often also offered at “off track” facilities, where players may bet on the events without actually being present to observe them in person.

Parimutuel betting differs from fixed odds betting in that the final payout is not determined until the pool is closed – in fixed odds betting, the payout is agreed at the time the bet is sold.

Example of parimutuel betting

Consider a hypothetical event which has 8 possible outcomes, in a country using a decimal currency such as dollars . Each outcome has a certain amount of money wagered:

Outcome 1 – $30.00
Outcome 2 – $70.00
Outcome 3 – $12.00
Outcome 4 – $55.00
Outcome 5 – $110.00
Outcome 6 – $47.00
Outcome 7 – $150.00
Outcome 8 – $40.00

Thus the total pool of money on the event is $514.00. Following the start of the event, no more wagers are accepted. The event is decided and the winning outcome is determined to be Outcome 4 with $55.00 wagered. The payout is now calculated. First the commission or take for the wagering company is deducted from the pool, for example with a commission rate of 14.25% the calculation is: $514 – 0.1425 * $514 = $440.76. The remaining amount in the pool is now distributed to those who wagered on Outcome 4: $440.76 / $55 = $8.00 per $1.00 wagered. Thus, in decimal odds, outcome 4 is said to pay out $8.00.

Often at certain times prior to the event, betting agencies will provide approximates for what should be paid out for a given outcome should no more bets be accepted at the current time. Using the example above, an approximates table using the same commission rate in decimal odds would be:

Outcome 1 – $14.69
Outcome 2 – $6.30
Outcome 3 – $36.73
Outcome 4 – $8.00
Outcome 5 – $4.00
Outcome 6 – $9.38
Outcome 7 – $2.94
Outcome 8 – $11.02

In real-life examples such as horse racing, the pool size often extends into millions of dollars with many different types of outcomes (winning horses) and complex commission calculations.

Sometimes the amounts paid out are rounded down to a denomination interval – in the United States and Australia, 10 cent intervals are used. The rounding loss is sometimes known as breakage and is retained by the betting agency as part of the commission.

[edit] History of parimutuel betting

The parimutuel system was invented by Parisian perfume maker Joseph Oller in 1865 when asked by a bookmaker friend to devise a fair system for bettors which guarantees a fixed profit for the bookmaker.

The large amount of calculation involved in this system led to the invention of a specialized mechanical calculating machine known as a totalisator, “automatic totalisator” or “tote board”. The first was installed at Ellerslie Racecourse, Auckland, New Zealand in 1913, and they came into widespread use at race courses throughout the world (the U.S. introduction was in 1933 at Arlington Park, near Chicago, Illinois).

[edit] Parimutuel bet types

There may be several different types of bets, in which case each type of bet has its own pool. The basic bets involve predicting the order of finish for a single participant, as follows:

[edit] North America

In Canada and the United States, the most common types of bet on horse races include:

• win – to succeed the bettor must pick the horse which wins the race.
• place – the bettor must pick a horse which finishes either first, second or sometimes third (depending if there is a third dividend).
• show – the bettor must pick a horse which finishes first, second, or third.
• exacta, perfecta, or exactor –the bettor must pick the two horses which finish first and second, in the right order.
• quinella or quiniela – the bettor must pick the two horses which finish first and second, but need not specify which will finish first.
• trifecta or triactor – the bettor must pick the three horses which finish first, second, and third, in the right order.
• superfecta – the bettor must pick the four horses which finish first, second, third and fourth, in the right order.
• box – a box can be placed around exotic betting types such as exacta, trifecta or superfecta bets. This places a bet for all combinations of the numbers in the box. A trifecta box with 3 numbers has 6 possible combinations and costs 6 times the betting base amount. A trifecta box with 5 numbers has 120 possible combinations and costs 120 times the betting base amount. In France, a box gives only the ordered permutations going along an ordered list of numbers such that a trifecta box with 6 numbers would cost 20 times the base amount.
• double – the bettor must pick the winners of two successive races; most race tracks in Canada and the United States take double wagers on the first two races on the program (the daily double) and on the last two (the late double).
• triple – the bettor must pick the winners of three successive races; many tracks offer rolling triples, or triples on any three successive races on the program. Also called pick three or more commonly, a treble
• sweep – the bettor must pick the winners of four or more successive races. In the US, this is usually called pick four and pick six, with the latter paying out a consolation return to bettors correctly selecting five winners out of six races, and with “rollover” jackpots accumulating each day until one or more bettors correctly picks all six winners.

Win, place and show wagers class as straight bets, and the remaining wagers as exotic bets. Bettors usually make multiple wagers on exotic bets. A box consists of a multiple wager in which punters bet all possible combinations of a group of horses in the same race. A key involves making a multiple wager with a single horse in one race bet in one position with all possible combinations of other selected horses in a single race. A wheel consists of betting all horses in one race of a bet involving two or more races. For example a 1-all daily double wheel bets the 1-horse in the first race with every horse in the second.

People making straight bets commonly employ the strategy of an ‘each way’ bet. Here the bettor picks a horse and bets it will win, and makes an additional bet that it will show, so that theoretically if the horse runs third it will at least pay back the two bets. The Canadian and American equivalent is the bet across (short for across the board): the bettor bets equal sums on the horse to win, place, and show.

In Canada and the United States punters make exotic wagers on horses running at the same track on the same program. In the United Kingdom bookmakers offer exotic wagers on horses at different tracks. Probably the Yankee occurs most commonly: in this the bettor tries to pick the winner of four races. This bet also includes subsidiary wagers on smaller combinations of the chosen horses; for example, if only two of the four horses win, the bettor still collects for their double. A Trixie requires trying to pick three winners, and a Canadian or Super Yankee trying to pick five; these also include subsidiary bets. The term nap identifies the best bet of the day.

A parlay or accumulator consists of a series of bets in which bettors stake the winnings from one race on the next in order until either the bettor loses or the series completes successfully.

[edit] Australia

• Win – Runner must finish first.
• Place – Runner must finish first, second or third place. (In events with five to seven runners, no dividends are payable on third place (“NTD” or No Third Dividend) and in events with 4 or fewer runners, only Win betting is allowed).
• Each-way – A combination of Win and Place. A $5 bet Each-way is a $5.00 bet to Win and a $5.00 bet to Place, for a total bet cost of $10.
• Exacta – the bettor must pick the two horses which finish first and second and specify which will finish first
• Quinella – the bettor must pick the two horses which finish first and second, but need not specify which will finish first.
• Trifecta the bettor must pick the three horses which finish first, second, and third and specify which will finish first, second and third.
• First4 – the bettor must pick the four horses which finish first, second, third and fourth, and specify which will finish first, second, third and fourth.
• Running Double – the bettor must pick the winners of two consecutive races at same track
• Daily Double – the bettor must pick the winners of two nominated races at the same track
• Treble – the bettor must pick the winners of three nominated races at the same track. This bet type is only available in the states of Queensland and South Australia
• Quadrella or Quaddie – the bettor must pick the winners of four nominated races at the same track.

[edit] Ireland and the United Kingdom

• Win – Runner must finish first.
• Place – Runner must finish within the first two places (in a 5-7 runner race), three places (8-15 runners) or four places (16+ runners).
• Each-way – Charged and settled as one bet to win and another bet to place (if asking for a bet of “five pounds each way” you will be expected to pay ten pounds).

Depending on the facility rules, which might vary from event to event, other bets may also be offered which allow the user to pick the finish of more than one participant, or more than one event. These are called exotics, and generally pay higher dividends. However, the facility’s take is usually higher for these bets as well. The major exotics (in North America and Australia) are:

• Exacta (exactor, perfecta) – Picks the first and second place finishers, in order.
• Quinella – Picks the first and second place finishers, in either order.
• Trifecta (triactor) – Picks the first, second, and third place finishers, in order.
• Superfecta (First Four in Australia) – Picks the first four finishers in order.
• Daily/Extra/Rolling Double – Picks the first place finishers in two different events.
• Quadrella – Picks the first in four consecutive races.
• Pick 3 and pick 4 – Picks the first in three or four consecutive races, not necessarily the first three or four races of the day. Some tracks offer a “rolling pick 3,” on the first three races, the second through fourth, third through fifth, and so on.
• Pick 6 (jackpot) – Picks the winners in six consecutive events.

“Gamble” redirects here. For other uses, see Gamble (disambiguation).

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The term gambling has had many different meanings depending on the cultural and historical context in which it is used. Currently, in Western societies, it has an economic definition, referring to “wagering money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods”. Typically the outcome of the wager is evident within a short period of time.

The term gaming in this context typically refers to instances in which the activity has been specifically permitted by law. The two words are not mutually exclusive; i.e.: a “gaming” company offers (legal) “gambling” activities to the public.

Legal aspects

Because many religious authorities generally disapprove of gambling to some extent, and because gambling can have adverse social consequences, most legal jurisdictions limit gambling to some extent. Some Islamic nations prohibit gambling; most other countries regulate it.^[3]

Many jurisdictions, local as well as national, either ban or heavily control (by licensing) gambling. Such regulation generally leads to gambling tourism and illegal gambling. The involvement of governments, through regulation and taxation, has led to a close connection between many governments and gaming organizations, where legal gambling provides significant government revenue, such as in Monaco or Macau.

Under US federal law, gambling is legal in the United States, and states are free to regulate or prohibit the practice. Gambling has been legal in Nevada since 1931, forming the backbone of the state’s economy, and the city of Las Vegas is perhaps the best known gambling destination in the world. In 1976, gambling was legalized in Atlantic City, New Jersey, and in 1990, it was legalized in Tunica, Mississippi; both of those cities have developed extensive casino and resort areas since then. Since a favorable US Supreme Court decision in 1987, many Native American tribes have built their own casinos on tribal lands as a way to provide revenue for the tribe. Because the tribes are considered sovereign nations, they are often exempt from state laws banning gambling, and are instead regulated under federal law.

Because contracts of insurance have many features in common with wagers, insurance contracts are often distinguished under law as agreements in which either party has an interest in the “bet-upon” outcome beyond the specific financial terms. E.g.: a “bet” with an insurer on whether one’s house will burn down is not gambling, but rather insurance — as the homeowner has an obvious interest in the continued existence of his/her home independent of the purely financial aspects of the “bet” (i.e., the insurance policy).

There is generally legislation requiring that the odds in gaming devices are statistically random, to prevent manufacturers from making some high-payoff results impossible. Since these high-payoffs have very low probability, a house bias can quite easily be missed unless checking the odds carefully.^[4]

Gambling variables

There are three variables common to all forms of gambling:

• How much is being wagered, the initial stake (in money or material goods).
• The predictability of the event.
  • In mechanical or electronic gambling such as lotteries, slot machines and bingo, the results are random and unpredictable; no amount of skill or knowledge (assuming machinery is functioning as intended) can give an advantage in predictability to anyone.
  • However, for sports events such as horse racing and soccer matches there is some predictability to the outcome; thus a person with greater knowledge and/or skill will have an advantage over others.
• The odds agreed between the two (or more) parties to the wager; where there is a house or a bookmaker, the odds are (quite legally) arranged in favour of the house.

The expected value, positive or negative, is a mathematical calculation using these three variables. The amount wagered determines the scale of an individual wager (bet); the odds and the amount wagered determine the payout if successful; the predictability determines the frequency of success. Finally the frequency of success times the payout minus the amount wagered equals the “expected value” The skill of a gambler lies in understanding and maneuvering the three variables so that the “actual value” is positive over a series of wagers.

Blackjack.

Types of gambling

Casino games

While almost any game can be played for money, and any game typically played for money can also be played just for fun, some games are generally offered in a casino setting.

“Beatable” casino games

A highly skilled player with a well-designed strategy can create a positive mathematical expectation on games such as:

• Blackjack—with card counting unless a continuous shuffler is used
• Pai Gow Poker and Tiles—player-dealt
• Parimutuel betting
• Poker (Also recognized as a game of skill)
• Slot machines—where progressive jackpots or bonuses reach a certain break-even point
• Sports betting
• Video poker—with proper pay table and/or progressive jackpot

“Unbeatable” casino games

A pachinko parlor in Tokyo, Japan.

These games have a negative expectation regardless of how few or many games someone plays. Nevertheless, this does not stop gamblers from having false beliefs (the “gambler’s fallacy”) that their actions or “way of playing” will influence the outcome.

• Baccarat (punto banco)
• Caribbean Stud Poker
• Casino war
• Craps (though some believe the use of dice control can beat the game)
• Fan-Tan
• Faro
• Keno
• Let it ride
• Pachinko
• Pyramid Poker
• 3-card poker
• 4-card poker
• Red Dog
• Roulette
• Sic Bo
• Spanish 21—without counting
• Texas Hold’em Bonus Poker

Non-casino gambling games

Mahjong tiles.

Gambling games that take place outside of casinos include Bingo (as played in the US and UK), dead pool, lotteries, pull-tab games and scratchcards, and Mahjong.

Other non-casino gambling games include:

• Card games, such as Liar’s poker, Bridge, Basset, Lansquenet, Piquet, Put, Teen patti
• Coin-tossing games such as Head and Tail, Two-up
• Confidence tricks such as Three-card Monte or the Shell game
• Carnival Games such as The Razzle or Hanky Pank
• Dice-based games, such as Backgammon, Liar’s dice, Passe-dix, Hazard, Threes, Pig, or Mexico

Fixed-odds gambling

Fixed-odds gambling and Parimutuel betting frequently occur at many types of sporting events. In addition many bookmakers offer fixed odds on a number of non-sports related outcomes, for example the direction and extent of movement of various financial indices, the winner of television competitions such as Big Brother, election results,^[5]. Interactive prediction markets also offer trading on these outcomes, with “shares” of results trading on an open market.

Parimutuel betting

Tokyo Racecourse in Tokyo, Japan.

Main article: Parimutuel betting

One of the most widespread forms of gambling involves betting on horse or greyhound racing. Wagering may take place through parimutuel pools; or bookmakers may take bets personally. Parimutuel wagers pay off at prices determined by support in the wagering pools, while bookmakers pay off either at the odds offered at the time of accepting the bet; or at the median odds offered by track bookmakers at the time the race started.

Sports betting

Main article: sports betting

Betting on team sports has become an important service industry in many countries. For example, millions of Britons play the football pools every week.

Arbitrage betting

Main article: arbitrage betting

Arbitrage betting is a theoretically risk-free betting system in which every outcome of an event is bet upon so that a known profit will be made by the bettor upon completion of the event, regardless of the outcome. Arbitrage betting is a combination of the ancient art of arbitrage trading and gambling, which has been made possible the large numbers of bookmakers in the marketplace, creating occasional opportunities for arbitrage.

Other types of betting

One can also bet with another person that a statement is true or false, or that a specified event will happen (a “back bet”) or will not happen (a “lay bet”) within a specified time. This occurs in particular when two people have opposing but strongly-held views on truth or events. Not only do the parties hope to gain from the bet, they place the bet also to demonstrate their certainty about the issue. Some means of determining the issue at stake must exist. Sometimes the amount bet remains nominal, demonstrating the outcome as one of principle rather than of financial importance.

Betting exchanges allow consumers to both back and lay at odds of their choice. Similar in some ways to a stock exchange, a better may want to back a horse (hoping it to win) or lay a horse (hoping it to lose, effectively acting as bookmaker)

Staking systems

Main article: betting strategy

Many betting systems have been created in an attempt to “beat the bookie” but most still accept that no system can make an unprofitable bet profitable over time. Widely-used systems include:

• Fixed stakes – a traditional system of staking the same amount on each selection.
• Fixed profits – the stakes vary based on the odds to ensure the same profit from each winning selection.
• Due-column betting – A variation on fixed profits betting in which the bettor sets a target profit and then calculates a bet size that will make this profit, adding any losses to the target.
• Kelly – the optimium level to bet to maximize your future median bank level.
• Martingale – A system based on staking enough each time to recover losses from previous bet(s) until one wins.

Other uses of the term “gambling”

Many risk-return choices are sometimes referred to colloquially as “gambling.” Whether this terminology is acceptable is a matter of debate, but generally the following activities are not considered gambling:

• Emotional or physical risk-taking, where the risk-return ratio is not quantifiable (e.g., skydiving, campaigning for political office, asking someone for a date, etc.)
• Insurance is a method of shifting risk from one party to another. Insurers use actuarial methods to calculate appropriate premiums, which could be considered similar to calculating gambling odds. However, insurers can set their premiums to obtain a long term positive expected return.
• Situations where the possible return is a secondary reason for the wager/purchase (e.g., buying a raffle ticket to support a charitable cause)

Investments are also usually not considered gambling, although some investments can involve significant risk. Examples of investments include stocks, bonds and real estate. Starting a business can also be considered a form of investment. Investments are generally not considered gambling when they meet the following criteria:

• Positive expected returns (at least in the long term)
• Economic utility
• Underlying value independent of the risk being undertaken

Some speculative investment activities are particularly risky, but are still usually considered separately from gambling:

• Securities derivatives, such as options or futures, where the value of the derivative is dependent on the value of the underlying asset at a specific point in time (typically the derivative’s associated expiration date)
• Foreign currency exchange (forex) transactions
• Prediction markets